Keshun Enters Industrial Coatings: Waterproofing Leader Seeks Growth Beyond Real Estate

In early June, a takeover by Keshun, one of China’s leading waterproofing companies, stirred discussion across both the building materials and coatings sectors.

According to Tianyancha and several industry media reports, Keshun Waterproof Technologies Co., Ltd. has acquired a 70% stake in Dalian Paint Co., Ltd., becoming the controlling shareholder of the century-old coatings company. Dalian Paint’s legal representative is Yang Chunguang, and its registered capital is RMB 22.30 million. Keshun’s investment accounts for 70% of the company’s equity.

This is not a simple financial investment.

Keshun’s traditional business has been waterproofing materials and waterproofing engineering, areas long tied to real estate, construction, and infrastructure. Dalian Paint, by contrast, has a clear background in industrial anti-corrosion coatings, marine coatings, and heavy-duty protective coatings. One is a leader in architectural waterproofing; the other is an old industrial coatings manufacturer from Northeast China. The combination sends a clear message: Keshun no longer wants to compete only within the waterproofing market. It is looking for growth in the broader industrial protective coatings sector.

The Waterproofing Market Is Under Pressure, and Keshun Needs a New Path

Keshun’s acquisition should not be seen simply as a cross-sector move.

It looks more like an active adjustment made by a leading waterproofing company after the industry entered a stock-market cycle.

For many years, the growth of waterproofing companies was highly dependent on real estate and construction projects. New residential buildings, commercial properties, urban renewal, and infrastructure projects all generated large demand for waterproofing materials. But as China’s property sector cooled, new construction area declined, project payment pressure increased, and the growth logic of the waterproofing industry changed.

Industry media tracking Keshun’s operating performance noted that Keshun’s revenue in 2025 was RMB 6.044 billion, down 11.49% year on year. Among this, waterproofing material revenue reached RMB 4.660 billion, down 12.78%, while waterproofing engineering revenue reached RMB 1.084 billion, down 10.68%.

This set of figures shows one thing clearly: it is becoming increasingly difficult to tell a high-growth story by relying only on the traditional waterproofing business.

The waterproofing industry is not without demand. The problem is that incremental demand is insufficient, competition is crowded, and pricing pressure is severe. If leading companies continue to rely only on their original engineering channels and real estate customers, they will become increasingly exposed to the property cycle.

Therefore, Keshun’s move into industrial coatings is not impulsive. It is a practical business shift: from architectural waterproofing toward a broader concept of coating-based protection.

Why Dalian Paint? Because It Is Not an Ordinary Small Coatings Factory

Dalian Paint, the company being acquired, is not a new brand or a small local coatings producer.

According to Dalian Paint’s official website, the company was founded in 1919, originally known as “Wuse Youfang,” and was renamed Dalian Paint Factory in 1950. After more than a century of development, Dalian Paint has become one of the backbone enterprises in China’s coatings industry, with “Seagull” as its core brand.

Public reports also noted that Dalian Paint once supplied marine coatings for “Yuejin,” the first 10,000-ton cargo ship of the People’s Republic of China. The “Seagull” trademark has been recognized as a famous brand in Dalian. The company also holds qualifications including China Classification Society factory approval and China Railway Test & Certification credentials. Its factory is located in the Dalian Free Trade Zone, covering about 30,000 square meters, with designed annual paint capacity of about 30,000 tons.

Looking at these details together, the value of Dalian Paint is not only about production capacity.

Its real value lies in three areas: brand history, industrial coatings qualifications, and experience in marine and heavy-duty anti-corrosion applications.

Industrial coatings are different from ordinary architectural coatings. In applications such as marine vessels, corrosion protection, bridges, rail transit, offshore engineering equipment, storage tanks, steel structures, and pipelines, customers have much higher requirements for product performance, construction systems, certification qualifications, and project track records. Having a production line and a few formulas is not enough to win orders immediately.

By taking control of Dalian Paint, Keshun has effectively used capital to obtain an entry ticket into the industrial coatings market.

The Real Target Is Industrial Anti-Corrosion and Marine Coatings

From the perspective of business synergy, the most important intersection between Keshun and Dalian Paint is “protection.”

Waterproofing is essentially protection for building structures. It solves problems related to leakage, weather resistance, aging, and service life. Industrial anti-corrosion coatings solve corrosion, salt mist, chemical media exposure, and long-term durability problems for steel structures, equipment, ships, bridges, pipelines, storage tanks, and other industrial scenarios.

The two businesses may appear to belong to different sectors, but their underlying logic is similar: both protect materials, both serve engineering scenarios, and both require channels, project capabilities, construction systems, and integrated solutions.

This is why Keshun’s entry into coatings is reasonable.

If Keshun were entering ordinary home decoration coatings, it might not have a clear advantage, because consumer branding, retail channels, and dealer systems require long-term investment. Industrial coatings are different. They are more project-oriented, engineering-oriented, and solution-driven, making them easier to connect with Keshun’s existing engineering business capabilities.

Dalian Paint has a foundation in marine coatings and heavy-duty anti-corrosion, while Keshun has national engineering channels and building materials service experience. Together, the two may focus on industrial anti-corrosion, marine coatings, steel structure protection, transportation engineering, and infrastructure maintenance.

In other words, Keshun is not simply trying to sell “paint.” It is trying to complete a larger engineering protection portfolio.

Whether an Old Brand Becomes a New Growth Engine Depends on Integration

Of course, acquisition is only the first step.

Dalian Paint has a century of history, along with accumulated brand value and qualifications. But an old brand does not naturally equal high growth. Many traditional industrial companies face similar problems: they have history, customer foundations, and technical experience, but their operating mechanisms, market responsiveness, product upgrade speed, and national channel expansion may not be strong enough.

After taking control, the real test for Keshun will be integration.

First, product upgrading will be critical.

The industrial coatings market is moving toward high performance, environmental compliance, waterborne systems, low-VOC products, and long-lasting anti-corrosion solutions. If Dalian Paint continues to rely only on traditional products, it will be difficult to open a larger market. Keshun needs to invest in R&D, process improvement, quality systems, and product line upgrading so that the old factory’s product structure can keep up with new demand.

Second, channel expansion will be critical.

Dalian Paint has strong regional and industry accumulation. But if Keshun wants to turn it into a national industrial coatings platform, it must connect its existing engineering customers, distribution network, project resources, and Dalian Paint’s product qualifications. Otherwise, the acquisition will remain only at the level of financial consolidation.

Third, management integration will be critical.

A waterproofing leader and a century-old coatings factory differ in corporate culture, organizational mechanisms, customer structure, and sales rhythm. If Keshun wants to truly obtain synergy, it cannot stop at equity control. It must make the business run effectively.

Therefore, the success of this deal will not be determined by the number “70%,” but by whether Keshun can transform Dalian Paint from a regional old coatings company into a more aggressive industrial coatings platform.

Why Industrial Coatings Are Worth the Bet

Keshun’s choice of industrial coatings also reflects the broader transformation direction of China’s building materials sector.

In the past, waterproofing, coatings, insulation, mortar, adhesives, and other building materials companies mostly grew around the new real estate market. But now, with the new housing cycle weakening, companies must find more stable and longer-term sources of demand.

The advantage of industrial coatings is that they are not completely dependent on new home sales.

Ships, bridges, steel structures, ports, rail transit, petrochemical equipment, power facilities, storage tanks, pipe galleries, and offshore engineering equipment all require long-term anti-corrosion protection and maintenance. Even if new construction slows, demand for maintenance, refurbishment, and protective coatings for existing assets still exists.

This matters to Keshun.

The waterproofing business is highly cyclical, while industrial anti-corrosion and marine coatings have stronger maintenance-driven characteristics. By entering these markets through acquisition, Keshun is essentially looking for a new path to reduce its exposure to the real estate cycle.

Put more directly, the waterproofing business cannot simply wait for the property market to recover. It has to find its own second growth curve.

Marine Coatings Are Difficult, But They Are Also High-Barrier

Another reason Dalian Paint is attractive is its marine coatings background.

Marine coatings are not ordinary coatings. They must withstand seawater, salt mist, abrasion, corrosion, marine organisms, long voyages, and complex construction environments. Customers in this field are also more professional, and both certification barriers and application barriers are higher.

Public reports have noted that Dalian Paint holds high-barrier qualifications such as China Classification Society factory approval. Such qualifications are valuable to Keshun because they can help it enter high-end industrial scenarios that were previously difficult to access.

However, the marine coatings market is not easy to penetrate.

In the global market, AkzoNobel, PPG, Nippon Marine Paint, and other multinational companies have long occupied the high-end segment. They do not only sell products. They also provide global port services, fleet maintenance systems, and long-term technical support. Nippon Marine Paint’s official website emphasizes that its marine coatings business has long focused on vessel protection, energy saving, and low-emission solutions.

This means that even if Keshun gains an entry point into marine coatings through Dalian Paint, it cannot expect instant success. To truly break through, it will still need continuous investment in product performance, global service capabilities, customer certification, engineering cases, and technical support.

But having the entry point is already important. Without qualifications, an old brand, and historical customers, a company may not even get a seat at the table.

From Single Products to Systems: A Broader Building Materials Trend

Keshun’s acquisition of Dalian Paint is also part of a broader industry trend: building materials companies are moving from single-product suppliers toward system solution providers.

In the past, companies sold waterproofing membranes, waterproofing coatings, architectural coatings, and industrial coatings separately. But customers increasingly need integrated solutions: how to waterproof buildings, how to protect exterior walls, how to protect underground projects, how to prevent corrosion in steel structures, how to extend the service life of roofing systems, and how to maintain industrial facilities.

Single products are becoming harder to differentiate. System capability will become the real competitive focus.

Keshun already has a foundation in waterproofing materials, waterproofing engineering, and civilian building materials. According to the company’s official website, Keshun has developed into a comprehensive building materials company focused on waterproofing solutions, integrating engineering building materials and civilian building materials businesses, with operations covering domestic and overseas markets.

By taking control of Dalian Paint, Keshun is extending its business boundary from waterproofing further into industrial coatings and anti-corrosion protection. If this direction is successfully developed, Keshun will no longer only sell waterproofing materials. It could provide a more complete “waterproofing + anti-corrosion + coating protection” system.

This has more room for imagination than simply competing on price.

Cross-Sector Expansion Is Not a Cure-All: Three Challenges Remain

This acquisition has strategic significance, but that does not mean it is risk-free.

The first challenge is industry competition.

Industrial coatings and marine coatings are not blue oceans. The high-end market is occupied by international giants, while the low-end market has many regional companies. Price competition and technology competition exist at the same time. If Keshun wants to establish itself, it must clearly define which scenarios to target first instead of spreading itself too thin.

The second challenge is profit realization.

The acquisition brings an entry point, not a profit guarantee. Whether Dalian Paint’s capacity, qualifications, and brand can turn into orders, and whether those orders can turn into profit, will depend on the follow-up integration.

The third challenge is pressure from the core business.

Keshun’s waterproofing business is still affected by the property cycle and the adjustment of the building materials industry. New businesses can diversify risk, but they also consume management resources and capital. If the new business grows slowly, it may not significantly improve overall performance in the short term.

Therefore, this acquisition does not mean that Keshun has already completed its transformation. It means Keshun has officially started betting on industrial coatings.

Conclusion: Keshun Bought More Than Dalian Paint. It Bought a New Track.

The most important point about Keshun’s control of Dalian Paint is not the 70% equity stake itself, but the strategic signal behind it.

The waterproofing industry has passed its easy-growth stage. After the property dividend faded, leading companies have had to search again for growth space. Dalian Paint offers exactly what Keshun lacked in the past: industrial coatings DNA, a century-old brand, marine coatings experience, heavy-duty anti-corrosion scenarios, industrial customer access, and qualification barriers.

If the integration goes well, Keshun may have the opportunity to move from a waterproofing leader toward a comprehensive coating protection company.

If the integration does not go well, it may become just another cross-sector acquisition that looks impressive on paper.

Next, the real question is not who Keshun bought, but whether it can turn Dalian Paint’s old industrial foundation into its own new growth engine.

The waterproofing track has become too crowded. This time, Keshun is pushing the battlefield into industrial coatings.